Reserve Bank of Australia governor Philip Lowe is worried about stagnating wages growth.Credit:Bloomberg
CoreLogic head of research Tim Lawless said despite the housing downturn gathering some pace in September,he did not expect the RBA to throw a lifeline to the housing market in the form of lower interest rates.
Cutting the cash rate could risk re-fuelling a housing market by giving borrowers access to cheaper credit.
"Amidst falling housing prices,low inflation and rising mortgage rates,the decision from the RBA to keep the cash rate on hold was widely expected;in fact financial markets aren’t expecting any move in the cash rate throughout 2019 and into 2020,"Mr Lawless said.
The last time the RBA moved the cash rate was August 2016 — a 25 basis point cut to its current level. It has remained that way for the entirety of Dr Lowe's tenure as RBA governor.
"The RBA is firmly on hold and remains still some way from contemplating a shift in narrative,"said Ms Auld.